MILLIONS of litres of diesel are being used for electricity generation in remote Aboriginal communities at a large cost to the State Government, while demand for power in the region continues to rise.

Aboriginal residents in Far North public housing are not charged for their electricity use.

But an Aboriginal health organisation warns retail reform could have dire consequences for the APY lands population.

The Government estimates total diesel consumption for power generation in 2013-14 across the Anangu Pitjantjatjara Yankunytjatjara (APY) lands, Maralinga Tjarutja lands and further south to Oak Valley and Yalata, will be close to 3.9 million litres.

The Government has budgeted $4.3 million to foot that bill, which has increased since the 2011-12 financial year, when more than 3.75 million litres of diesel was used.

The fuel is mostly used in generators to power community infrastructure.

In a bid to better manage and understand electricity use in the region, the Government commissioned Bushlight to study the way the communities use energy.

Bushlight is part of national indigenous science and technology non-profit organisation, the Centre for Appropriate Technology (CAT).

The report, released publicly late last month, warns increasing costs of supply and maintaining electricity in the remote region poses a serious challenge for funding and supply sustainability.

The report also points out indigenous residents in public housing are not charged for electricity.

“The absence of both a price mechanism and any consumption feedback mean that there is little incentive – financial or otherwise – for residents to reduce their power use,” the report states.

“This is the only group of communities in Australia, where people aren’t paying for power. People in Alice Springs, other parts of NT, WA and QLD are paying for power, usually with power cards,’’ notes a community version of the report.

The State Government says it is still considering the report’s recommendations and has not decided if it will move to charge Aboriginal remote public housing residents for power.

Opposition spokesman for Energy, Economic and Regional Development Martin Hamilton-Smith says he is cautious about implementing retail reforms.

“In principle, where there is capacity to pay, and where it would deliver the right outcome, any family and any business should be asked to pay,’’ he said.

“But, one has to be mindful, particularly in the Pit (Pitjantjatjara) lands of a family’s capacity to pay, and if the capacity to pay is simply not there ... then it is not going to achieve a great deal.”

Aboriginal-owned and controlled health organisation Nganampa Health Council is concerned charging for electricity could impact the health of the APY lands population.

“It could significantly lead to overcrowding if households are unable to pay for their electricity and the supply to their house is disconnected. This will reverse much of the work that has been done increasing the amount of housing on the APY Lands.’’

But Uniting Communities manager of indigenous policy and advocacy Jonathan Nicholls says current arrangements don’t provide incentive for local people to use less power.

“The next State Government needs to look at the option of introducing prepaid power cards similar to what happens in other parts of Australia,” he said.

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